In other fields, where jobs are not protected by unions, the answer might be to make your fortune while you’re young, so you don’t have to worry about being replaced when you’re older.[/quote]
ding ding ding… Counting on a today’s salary to fund future needs is financial suicide. It continues to amaze me that folks will argue over a pathetic 2-3-4-5% raise at work, it it entails working an additional 30% more. (It’s one thing if there’s a sense of personal enjoyment or accomplishment.But purely on a comp perspective…not the best ROI)
It’s never about how much salary you make. It’s always about what you do with it…
Which is why I find it so ironic by folks who keep arguing the “sweat money” is soooo much more noble and “earned” than “investment equity”..Sure, go work on a rig lifting boxes up and down for $100-200/hr starting when your twenties or lifting an engine block day in and day out at a stealership…
Let me know how that works for you if you haven’t done anything meaningful with your money when you’re in your 40ies-50ies when your back goes out.
…Furthermore, let me know how it works out if in your attempt to convert “sweat money” to passive investment but then are are taxed ridiculously 40,50,60% on investment income (as some people think investment income should but thankfully aren’t in office (yet)) such that you have to continue to work in your 60ies and 70ies lifting boxes.
I will agree with one fundamental thing though…Majority of younger generations are gonna have a tougher time building wealth because (a) reduced “sweat money” available (b) more importantly, importantly reduced ability to convert “sweat equity” to investment income in a meaningful way as we generally have increasingly unfriendly government encroachment (and frankly individuals who champion it ) via taxes.
Take care of your own. Because no one else will and they’re screwed if you don’t. And it’s probably more important ever so now than before. And now with the latest fiscal cliff deal, apparently government has green lighted this with the estate taxes exemption…[/quote]
It appears we agree, flu. I’m not really sure why more people don’t think this way. It’s always been important, but, IMO, will become essential going forward.
Even though young people never think any life changing events–job loss-health problems, etc.–will ever come their way, and that it will be smooth-sailing from here to a cushy retirement, might be in for a rude awakening–especially in the world of today, where life is changing faster than ever–as CAR mentioned.
I’ve seen countless people in their 40’s and 50’s go down the tubes in one way or another–invincible today–gone tomorrow. That’s why I was so determined, as I know you are, to insulate myself and my family from that fate.
